Whitebark Energy Limited announced that production at the Company's 100% owned Wizard lake facility has increased fourfold to 220 barrels of oil equivalent per day (boe/d) from 50 boe/d prior to commencing production at the Rex-4 well post fracture stimulation. The pump rate at Rex-4 has gradually increased to 6.5 spm as of January 31 with the well now producing at rates of 500 barrels of fluid per day. The current oil cut is approximately 20% and increasing steadily.

Rex-4 currently sits at 95% recovery of injected fluid. Eventual oil cut is expected to be approximately 40-50% (as demonstrated in wells Rex-1 through Rex-3),and the rise in oil cutis expected to occur in the weeks following the recovery of the remaining load fluid. This is a standard oil-saturation for sandstone reservoirs.

Rex-4 is performing according to expectations and in line with the other wells. During the clean-up period, flow rates have been gradually increased as appropriate based on the behaviour of the well. As the frac fluid is increasingly recovered, Rex-4 oil flow-rates will gradually increase over the course of several weeks.

The flow rates will increase to the modelled stabilised initial production rate of approximately 300 bopd plus associated gas. The company believe that this strategy will contribute to greater well lifespan and increased ultimate recovery. The Company successfully ran 50 hydraulic fracture stimulation stages in the target Rex Sandstone reservoir at an approximate interval of 40m per the completion plan.

The fracture stimulation program was the most ambitious yet and was consistent with the strategic plan of increased horizontal length and a greater number of fracture stages than in previous wells. Each of the fifty 30 Tonne fracs consisted of 1 tonne of 50/140 sand followed by 29 tonnes of 16/30 sand with final concentrations of 600-800 kg/m3. A total of 1483.5 tonnes of proppant was pumped during the program.

Wizard Lake Oil and Gas Field - Immediate development potential: It is planned for the next four Wizard Lake wells (Rex-5 through Rex-8) to address existing Proved ("1P") Reserves which is calculated to be 2.3 million barrels of oil equivalent. Whitebark plans to drill and complete all four wells from the existing well pad without further infrastructure investment. The Company has identified 20 additional development locations, which will target the remainder of the Company's 2P reserves (5.12 million barrels of oil equivalent¹ in total) and contingent resources (an additional 4.7 mmboe).